UNIVERSITY OF MUMBAI

A PROJECT REPORT ON
A STUDY ON IMPACT OF SURROGATE
ADVERTISEMENT IN SURROGATE PRODUCTS

A PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR
BACHELOR OF MANAGEMENT STUDIES

SUBMITTED BY:
YASH KOLI

BATCHLOR OF MANAGEMENT STUDIES

SEMESTER-V
2016-2017

UNDER THE GUIDANCE OF:

PROF: SHAILU SINGH

1
2
 UNIVERSITY OF MUMBAI

A PROJECT REPORT ON

A STUDY ON IMPACT OF SURROGATE

ADVERTISEMENT
IN SURROGATE PRODUCTS

A PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR
BACHELOR OF MANAGEMENT STUDIES
(BMS)

SUBMITTED BY:
YASH KOLI

BACHELOR OF MANAGEMENT STUDIES

SEMESTER-V
2016-2017

UNDER THE GUIDANCE OF

PROF: SHAILU SINGH

SANPADA COLLEGE OF COMMERCE &

TECHNOLOGY
PLOT NO: 3, 4 & 5, SECTOR-2, SANPADA (EAST)
NAVI MUMBAI-400705.

3
 DECLARATION

I, MR. YASH KOLI, STUDENT OF SANPADA COLLEGE OF

COMMERCE & TECHNOLOGY STUDIES BACHELOR OF

MANAGEMENT STUDIES FIFTH SEMESTER; HEREBY DECLARE

THAT I HAVE COMPLETED THIS PROJECT REPORT ON A STUDY

ON IMPACT OF SURROGATE ADVERTISEMENT IN

SURROGATE PRODUCTS DURING THE ACADEMIC YEAR 2016-

2017. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO

THE BEST OF MY KNOWLEDGE.

NAME: YASH KOLI

DATE: 1ST OCTOBER, 2016

4
 ACKNOWLEDGEMENT

At the outset, I am thankful to my institute Oriental Education

Society, and the authorities, for providing me an opportunity to undertake
my Bachelors Degree in management studies (BMS), and also for sponsoring
me to undertake project. I am thankful to the management for giving me an
opportunity to undertake my project (A STUDY ON IMPACT OF SURROGATE
ADVERTISEMENT IN SURROGATE PRODUCTS) under the guidance of Prof.
Shailu Singh as my mentor.

I would like to thank our Faculty guide, Prof. Mustak Deraiya

(Professor, Oriental Education Society), for providing valuable suggestions
and guidance during the project. His perspective has encouraged me to
incorporate a different dimension to the project

I am grateful to my colleagues for being a wonderful support a through

at the same time I am thankful to all my friends of Oriental Education Society,
for being with me at different junctures of need.

I also acknowledge great sense of gratitude to all those who have

enriched and improved my thinking, through their conversations, thoughts,
experience and guided me to complete this report.

NAME: YASH KOLI

5
 ORIENTAL EDUCATION SOCI ETYS
SANPADA COLLEGE OF COMMERCE & TECHNOLOGY
PLOT NO. 3,4,5, SECTOR 2, S ANP AD A, NAVI MUMBAI 40070 53

CERTIFICATE
This is to certify that MR. YASH KOLI OF Third year of bachelor of commerce in
Marketing, semester v has undertaken and completed the project work titled A STUDY
ON IMPACT OF SURROGATE ADVERTISEMENT ON SURROGATE
PRODUCTS during the academic year 2016-2017 under the guidance of Prof. SHAILU
SINGH submitted on 05TH OCTOBER 2016 to this college in fulfilment of the
curriculum of Third year of bachelor of commerce in banking & insurance, University of
Mumbai. This is a bonafide project work and the information presented is true and
original to the best of our knowledge and belief.

PROJECT GUIDE External Examiner PRINCIPAL

(PROF. SHAILU SINGH) (DR.D.M.MULEY)

CHIEF CO-ORDINATOR
(PROF. MUSTAK DERAIYA)

6
 INDEX

SR. PAGE
NO. CONTENTS NO.

1 EXECUTIVE SUMMARY 7

2 INTRODUCTION 8-23

3 LITERATURE REVIEW 24-38

4 INDUSTRY ANALYSIS 39-42

5 TYPES OF ADVERTISING 43-46

ADVERTISING INDUSTRY IN 46-54

INDIA
6 THE COMPANY PROFILE 55-57

7 AIMS AND OBJECTIVES 58-60

8 OBJECTIVES OF COMPANY 61-65

9 RESEARCH METHODOLOGY 67-70

10 DATA ANALYSIS AND 71-78

INTERPRETATION
11 FINDINGS 80

12 CONCLUSION 81

13 SUGGESTIONS 82

14 BIBLIOGRAPHY 84

15 ANNEXURES 86-87

7
 EXECUTIVE SUMMARY

As in todays advertisement scenario, surrogate advertisements hold great

potential and growth when compare to other advertisements. This growth
and potentiality directed to enter into this sector. The success story of a
good advertisement depends on how it creates image before customers
mind. This study tries to reveal the knowledge and perception of
customers by exploring their experiences and valuable suggestions. Also
trying to find out whether the surrogate advertisements make some impact
throughout the market. Only some advertisements make the customers to
try the product.

So descriptive type of research is adopted for studying the overall market.

Non probability sampling technique, convenient sampling is carried out
for collecting the primary data. Though the percentage method datas is
being interpreted Primary as well as secondary datas were collected
through questionnaire method, and it helps to experience the advertisement
perception of customer directly. Customers mainly remind the surrogate
advertisements because on the medium, it is represented through different
medias. The entire study points out the area of improvements, while doing
the surrogate advertisements. As every advertisement were intended to
create some good impacts on customers mind; ethically it has to satisfy all
the desires and needs of customer. It came to know that people remember
the brand names and ask for the surrogate products. Because of the
knowledge and awareness level of surrogate advertisements are high, it is
sure that liquor companies can take the mileage through surrogate
products.

8
Chapter 1
INTRODUCTION

9
1.1 INTRODUCTION
Research is the scholarly or scientific practice of gathering existing
or new information in order to enhance one's knowledge of a specific area.
Research has many categories, from medicine to literature.

"Marketing research is the function that links the consumer,

customer, and public to the marketer through information - information
used to identify and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing as a process.
Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and
implements the data collection process, analyses, and communicates the
findings and their implications."- American Marketing Association
(AMA)

Surrogate Advertising is the form of advertising in which a similar of

different product promotes another product by using the brand and logo of
the product whose promotion is intended. The sponsoring of
sports/cultural/leisure events and activities using brand name of a product
also falls in the category of surrogate advertising. The primary intention of
surrogate ads is not to increase the sales of the product being advertised,
but to rather create a brand recall of the desired product in the mind of
target consumers.

The need for Surrogate advertising arises when due to regulatory change
in a country or a region, advertising and promotion of certain product gets

10
prohibited. It is widely accepted that the concept of Surrogate Advertising
started in UK when strong protests from British housewives against liquor
brands targeting their husbands led to ban on promotion of liquor brands.
In response, liquor companies came up with acceptable products like juice
and soda using the brand name of their liquor product. Indian market
adopted a wide use of surrogate ads when a blanket ban was applied to the
promotion of liquor and tobacco products by the Government in
September 2000 which led to companies aggressively using surrogate ads
to maintain the brand value of their products.

Consequently, Indian consumers saw surrogate ads after the ban, with ads
like Bagpiper club soda, Kingfisher airlines, Royal Seagram CDs and
audio cassettes ensuring their brand value did not diminish. ITC used a
different approach of making Wills the main sponsor of the Indian cricket
team. At present it uses its apparel store Wills lifestyle to communicate its
most widely known cigarette brand. We even have an IPL team "Royal
Challengers" indirectly referring to the flagship liquor product of the
owner company. Surrogate ads probably reflects the way marketing world
evolves and adapts in response to the regulatory changes, or changing
consumer preferences and methods of communication. Therefore, next
time you see IPL cricketers humming to "Oo la la la la la", rest assure
Kingfisher just reminded you of its beer and the happiness you'll get from
having it.

INDIAN MARKETING & ADVERTISING SCENARIO

The Indian marketing & advertising sector have shown a tremendous

growth since the early 90s with several progressive plans implemented by
the Indian government. The government then decided to open the Indian

11
market for foreign investors and allowed foreign equity. That paved the
way for the opening the floodgates of the boom in these sectors which is
still shining high. Marketing & advertising (M&A) are the tools which can
be used by an organization to relate itself to its target audience at a large
scale. The 'Grand Old Man' of Indian advertising, R.K. Swamy, was
instrumental in bringing advertising to the Indian map at the age of 50.

Several big names such as Ogilvy & Mather, JWT and Mudra have
established large business houses and have made a name for them in this
large growing M&A market. There are several benefits attached with the
promotion of a company using the medium of marketing & advertising. It
is economical, easy-to-use, appeals to a large public group and it provides
the company an opportunity to be on a more interactive and more
informative platform. The prospective customers can get the required
information and also purchase the products of the company by using credit
cards or pay-pal (online payment). This has proved to be beneficial for
both the companies and the customers as that helps in the growth of the
market overall and ensures availability of right products at the right time
and that too economical.

Many of the Indian M&A companies are earning their deserved name and
fame by being conferred with the honour of market-leaders and several
others are on an emulating spree to achieve the feat of their peers. Lowe
India was recently conferred at the recently concluded Asian Advertising
Awards by Media Magazine Awards. Ogilvy & Mather recently won the
Pink slip recognition by the Times of India Group for its unmatched
work skills.

12
Indias Advertising industry is expected to grow at a rate of 16.8 per cent
year-on-year to Rs 51,365 crore (US$ 7.61 billion) in 2016#, buoyed by
positive industry sentiment and a strong GDP growth of 7 percent and
above.
India's digital advertising market has grown at a fast pace of 33 per cent
annually between 2010 and 2015##, while the spend as a percentage of
total advertising increased to 13 per cent or nearly US$ 1 billion in 2015.

Outdoor Advisor Advertising avenues such a billboard ad, kiosks ads,

airport/metro/mall ads are popularly adopting in India is one of the most
opted modes of brand promotion. Indian Outdoor advertising industry
comprises of a major share in the overall advertising industry. Outdated by
brand owners. Billboard advertising is one of the most widely adopted
forms of outdoor advertising. One can see billboard ads almost anywhere
in the city- at the traffic point, at the metro stations, at the shopping malls,
at the roadsides, at the highway etc. Until the launch of some
technologically enhanced tools of outdoor advertising, Indian outdoor
advertising was synonymous to billboard and poster advertising. Billboard
ads have been effectively used by brand owners and advertisers on a larger
scale.
With digital technology, Indian Outdoor Advertising has seen a drastic
change. Billboard ads are even digitalized in contemporary outdoor
advertising, thereby providing a richer impact on target groups about the
various endorsed brands. The rising numbers of shopping malls again
provide lucrative advertising opportunities to brand owners who want to
advertise their brands through the rich and interactive mall media. Mall
culture is spreading at each and every nook and corner of the country,
thereby providing brand owners striking opportunities to popularize and
position their brands amongst target groups. Airport Advertising, another

13
 popular avenue of outdoor advertising is also gaining much acclamation as
one of the most effective avenues of brand promotion. Airport ads are
considered exclusive because of the rich ambience as well as the state-of-
art advertising mediums used by brand owners to launch their promotion
campaigns. Airport ads target rich people/decision makers who can easily
spend for the advertised brands. Hence, various posh brand ads are
launched through airport media with a targeted impact on those rich
customers. The growing numbers of airports in the country further provide
brand owners exclusive brand advertising opportunities.

1.2 NEED FOR THE STUDY

Surrogate advertisement resemble the original product or could be a

different product altogether, but using the established brand of the original
product. The trend of surrogate advertisement gathered momentum with
several Medias around worldwide. As heated debates are going over the
issue of surrogate advertising; whether it is needed or not, by doing the
study expects to throw light on the subject. Being these advertisements
attracted criticism from various people as they are not only misleading, but
also false and dishonest in many cases. And mainly concerned with
knowing the knowledge of public about surrogate advertisement.

1.3 SCOPE OF WORK

1. The study was conducted in Mumbai City for collecting information.

2. The present study was conducted to help the company; how surrogate
advertisements hits customers mind.

14
3. The study helps to work on the media though which customer knows about
the surrogate products.

4. The study was conducted keeping in mind to understand the customer

knowledge of surrogate advertisements.

1.4 PROBLEM IDENTIFICATION

O&M would like to know what is the perception of customers, their

knowledge and how can they develop new advertisement campaigns and
strategies for their client, to make surrogate advertisements in a better way.
1.5 SURROGATE ADVERTISEMENTS

A surrogate advertisement is one in which a different product is promoted

using an already established brand name. Such advertisements or
sponsorships help in contribute to brand recall. The different product
shown in the advertisement is called the Surrogate. It could either
resemble the original product or could be a different product altogether,
but using the established brand of the original product. The sponsoring of
sports/cultural/leisure events and activities also falls under the purview of
surrogate advertising.

In India, the trend of surrogate advertisement gathered momentum with the

Cable TV Network Regulation Act, which prohibits tobacco and liquor
advertisements on TV channels. The liquor industry has intentionally
blurred the line between products, advertising `old wine' in a `new bottle,'
only this time with label.
Surrogate Advertising is the form of advertising in which a similar of
different product promotes another product by using the brand and logo of

15
the product whose promotion is intended. The sponsoring of
sports/cultural/leisure events and activities using brand name of a product
also falls in the category of surrogate advertising. The primary intention of
surrogate ads is not to increase the sales of the product being advertised,
but to rather create a brand recall of the desired product in the mind of
target consumers.

The need for Surrogate advertising arises when due to regulatory change in
a country or a region, advertising and promotion of certain product gets
prohibited. It is widely accepted that the concept of Surrogate Advertising
started in UK when strong protests from British housewives against liquor
brands targeting their husbands led to ban on promotion of liquor brands.
In response, liquor companies came up with acceptable products like juice
and soda using the brand name of their liquor product. Indian market
adopted a wide use of surrogate ads when a blanket ban was applied to the
promotion of liquor and tobacco products by the Government in
September 2000 which led to companies aggressively using surrogate ads
to maintain the brand value of their products. Consequently, Indian
consumers saw surrogate ads after the ban, with ads like Bagpiper club
soda, Kingfisher airlines, Royal Seagram CDs and audio cassettes ensuring
their brand value did not diminish. ITC used a different approach of
making Wills the main sponsor of the Indian cricket team. At present it
uses its apparel store Wills lifestyle to communicate its most widely
known cigarette brand. We even have an IPL team "Royal Challengers"
indirectly referring to the flagship liquor product of the owner company.

Surrogate ads probably reflects the way marketing world evolves and
adapts in response to the regulatory changes, or changing consumer
preferences and methods of communication. Therefore, next time you see

16
IPL cricketers humming to "Oo la la la la la", rest assure Kingfisher just
reminded you of its beer and the happiness you'll get from having it. By
August 2002, the I&B Ministry had banned 12 advertisements and leading
satellite TV channels including Zee, Sony, STAR and Aaj Tak were issued
show cause notices to explain their rationale behind carrying surrogate
liquor advertisements. Product advertising for liquor and cigarette
companies is banned in the country since 1995 by Cable Television
Network (Regulation) Act. According to Rule 7 (2) of the Act, no
broadcaster is permitted to show advertisement which promotes directly or
indirectly promotion, sale or consumption of cigarettes, tobacco products,
wine, alcohol, liquor or other intoxicants, infant milk substitution, feeding
bottle or infant food. This ban is now likely to be extended to advertising
of extended brands.

In June 2002, the Indian Information and Broadcasting (I&B) Ministry

served notices to leading television broadcasters to ban the telecast of two
surrogate ads of liquor brands McDowell No.1 and Gilbeys Green Label.
The Ministry also put some other brands ---Smirnoff Vodka, Haywards
5000, Royal Challenge Whiskey and kingfisher beer on a watch list. The
surrogates used by these advertisements ranged from audio cassettes, CDs,
perfumes to golf accessories and mineral water.

A market survey in 2001 revealed that advertising has a direct influence on

the consumption habits of 431 million people in India and an indirect
impact on 275 million `aspirants from the lower income group.
Considering this and realizing that nearly 50 per cent of the television
owners have access to cable channels, there is no doubt that the hidden call
for alcohol consumption behind the surrogate advertisements is not
escaping the eyes of viewers in the world's fourth highest liquor-

17
consuming country. The very purpose of banning liquor advertisements is
defeated by surrogate advertising. Answering to the notices, Zee and
STAR stopped telecasting the advertisements, followed soon by Aaj Tak
and Sony.

In addition, the I&B Ministry hired a private monitoring agency to keep a

watch on all the advertisements for violation of the Act. These
developments led to heated debates over the issue of surrogate advertising
by liquor companies being allowed on national media. Though the
companies involved came out strongly
against the I&B Ministrys decision, they seemed to have no other choice,
given the highly regulated nature of the liquor business. Analyst remarked
that there was lot of hypocrisy underlying the government policy. They
said on the one hand they allow these socially bad products to be
manufactured and sold and then they deny the manufacturers the right to
propagate knowledge of their products in order to drive sales. If something
is bad and cannot be advertised, why allow it to be sold at all?

Liquor producers spent heavily on advertising on the electronic media,

particularly TV. Though the broadcasters were bound by the 30 years old
advertising code, which stated that No advertisements shall be permitted
which relates to or promotes cigarettes and tobacco products, liquor, wines
and other intoxicants, the telecast of such product continued blatantly
over the years. More over the satellite channels garnered about 50% of
their revenue from liquor and cigarettes advertisements. In the peak
seasoned it gets almost doubled.

Due to the ban, liquor companies focused more on promotions for brand
building. They started sponsoring events that projected the glamour of

18
the brands, like track racing, car rallies etc. for instance Shaw Wallace Co.
one of the leading liquor companies in India, conducted the Royal
Challenge Invitation Golf tournament, which became an annual event.
Some companies also promoted their product through corporate
advertising, distributing free gifts like Caps and T-Shirts with the brand
name and using glow-signs outside the retail outlets. The ban on
advertising of alcohol beverage products has severely handicapped
communication with consumers. The industry is naturally compelled to
make the best use of the channels and media of communications still open
to it. Companies with liquor brands are not advertising liquor products;
instead they have extended the equity of their brands into other fields.
Over a period of time these products have become independent businesses
for companies.

However, as the TV was the most effective medium of advertising,

surrogate advertising on TV became popular. The liquor producers seemed
to have ensured that the ban was only on the paper.
In the meantime, some producers entered new segments under the liquor
brand or advertised these products under liquor brand. Most of the liquor
producers entered into packaged water segment, such as Kingfisher
Mineral water. McDowell used surrogate advertising by using its mineral
water and soda brands, which generated additional revenues for the
company. In 2014-15, surrogate ads like Bagpiper club soda, Kingfisher
airlines, Royal Seagram CDs and audio cassettes ensuring their brand
value did not diminish. ITC used a different approach of making Wills the
main sponsor of the Indian cricket team. At present it uses its apparel store
Wills lifestyle to communicate its most widely known cigarette brand. We
even have an IPL team "Royal Challengers" indirectly referring to the
flagship liquor product of the owner company.

19
The surrogate advertisements from liquor companies intensified further
through sponsorships of movies, music shows, and other programs and
attracting youth. For instance, Seagrams Royal Stag was promoted by
sponsoring movie related activities and Indian pop music using the banner
Royal Stag Mega Movies and Royal Stag Mega Music. In late 2001, the
broadcasters began airing socially responsible advertisements sponsored
by liquor companies. Surrogate advertising of liquor brands had intensified
like never before on satellite TV channels. These advertisements attracted
criticism from various people. There were numerous other advertisements
selling music cassettes, CDs, water, clothing, fashion accessories and
sports goods --- many of them accused of being sexually provocative and
offensive.

In 2013-14, Seagrams India was planned to promote its main brands like
Royal Stag, 100 Pipers through sponsorship of movies and other similar
initiatives, which are still out of the purview of the ban.
McDowell Mera No. 1 ad campaign is now being aired with changed
products i.e. from whisky to soda. United Breweries is selling its mineral
water under the Kingfisher brand.

Exhibit-1

The Advertising Standards Council of India (ASCI) has clarified that as

per its code, the mere use of a brand name or company name that may also

20
be applied to a product whose advertising is restricted or prohibited is not
reason to find the advertisement objectionable provided the advertisement
is not objectionable and the product is produced and distributed in
reasonable quantities and the objectionable advertisement does not contain
direct or indirect cues for the product that which is not allowed to be
advertised.

However, the analyst opined that the ban could turn out to be advantages
for the domestic players. As per the commitment to the WTO agreement,
MNCs would have an unrestricted license to sell their products. After the
ban, these MNCs would not have access to the quickest and most effective
form of advertising --- the TV. Some analyst argued that the ban would not
affect the established domestic players severely. It would only affect the
new launches and new brand building of these companies. The ban was
also expected to improve the margins for these players.

The latest television ad for AC Black Apple Juice epitomizes so many

things that are wrong with surrogate advertising in India.
Most of the surrogate advertising is done pretty blatantly with the
harmless product being nothing more than a front for advertising the
harmful brand. So you have various liquor/cigarette manufacturers
resorting to ingenuous ways to peddle their wares.

Of course there are a very few brands which start off as a surrogate brand,
but over a period of time actually become full-fledged brands in
themselves. The Wills Sport clothing line from the manufacturers of
Wills cigarettes are one of those rare cases.

21
 But on the whole, surrogate advertising is dedicated towards using an
insignificant, harmless product to increase/maintain awareness for their
primary harmful brand. And thats not an easy task. For instance, how
do you portray the essence of a whiskey or vodka or a cigarette using a
bottle of bottled water or a pack of apple juice?

Similarly, "HUM tum or mera Bagpiper". This Bagpiper club soda

advertisement, featuring cine celebrities, is similar to the earlier one for
Bagpiper whisky. The advertisement comes with the same music and
punch line as the one for the popular liquor brand telecast before the ban
on liquor advertisements.

Not easy. And guess who/what suffers when faced with this quandary?

1. Consumers - because we have to put up with the lameass, stupid

advertising thats designed to sell booze/ciggies but pretends to be all
about water or apple juice! Its like everyone knows whats going on - the
manufacturers know what the real reason for the ad is, the consumers
know whats really been advertised, and the government knows that too.
So why not either (i) do away with this wholesale scam and just let them
advertise all their stuff, or (ii) ban such surrogate advertising?

2. Advertising - because ad agencies have to come up with silly ads based on

briefs from clients who are not interested in the surrogate brand, but the
primary brand. I agree some might consider it a worthy challenge to do
something like this, but from what Ive seen of surrogate advertising in
India the output is pretty lame.
Surrogate advertisements are not only misleading, but also false and

22
dishonest in many cases. With surrogate advertising so widespread, this is
the moment to tackle the problem head-on.

There should be stringent regulatory measures to curb the practice, such

as:

i) Making transparent laws banning surrogate advertisements for

different products under a single brand name, by amending the Trade
Marks Act, for instance.

ii) Providing teeth to the Advertising Standards Council of India to

enable it take action against false and misleading advertisements, and keep
a close vigil over clever evasion of the law.

iii) Asking the electronic and print media to adhere to the advertisement
codes and not encourages surrogate advertisements.

iv) Calling on the ASCI address complaints received from consumers

against surrogate advertisements and take appropriate actions immediately.

v) Creating a consumer awareness programme to help people

understand the negative impact of surrogate advertisements.

vi) Adopting strict laws to penalize those companies featuring surrogate

advertisements without any real existence of the product.

vii) Requiring advertising agencies to have full knowledge of the

products under the same brand for which they are promoting

23
advertisements, and taking legal actions against those agencies which
design surrogate advertisements.

If one believes that honesty is the best policy and truth ultimately gains,
the best policy would be to stand up strongly to the dishonest practices of
surrogate advertising.

Senior sources at IBF also said that the industry body had sent out show-
cause notices to a couple of channels regarding ads of certain alcohol and
tobacco products. Most channels have reportedly complied with the
Government panels directive to the extent that the ads of a liquor
company that purportedly makes apple juice after drinking which
anything can happen (kuch bhi ho sakta hain) have been taken off air.

PROBLEM STATEMENT

When the Advertising Standards Council of India (ASCI) withdrew its

code to regulate tobacco, liquor products etc. consumer activists were
concerned over the impact of the move.

The issue has taken a new twist with the Central Government deciding to
ban these product companies from sponsoring sports and cultural events.
Liquor or tobacco advertising in banned in India and hence companies that
sell these products have to resort to advertising their wares using less
harmful products which carry almost the same names and looks -
surrogate advertising.

24
1.6 RESEARCH OBJECTIVES:

Does the surrogate advertisement have any impact on the consumers

buying behaviour for buy the surrogate products?

To find customers perception on surrogate ads.

Do the liquor companies able to utilize the established brand names on

surrogate advertisement?
To know the media pattern, through which the companies able to retain
their brand names through ads.

Do Customers believe on unethical ways of advertising by brand recalling

even if they know that it is a surrogate one?

1.7LIMITATIONS OF THE STUDY:

25
1. The time schedule given to the researcher was too short; due to which the
researcher was not able to meet more potential customers.

2. There were customers who gave vague as well as no responses to get

complete information needed for the research study.

Chapter 2
LITERATURE REVIEW

26
27
2.1 Literature Review

Surrogate advertising is advertising which embeds a brand or product

message inside an advertisement which is ostensibly for another brand or
product. For example, a cigarette company might issue public service
announcements relating to a topic such as lung cancer, using the
company's logo or distinctive brand colours in the ads so that people are
exposed to the company's branding without seeing an explicit ad for the
company's product. The company would justify the advertisement by
claiming that it's an example of social responsibility.

There are a number of reasons for companies to use surrogate advertising.

One of the most common reasons is to circumvent a ban on direct
advertisements of particular products. Many nations have laws restricting
alcohol and tobacco advertising, for example, so companies use surrogate
advertising to market their products. Techniques used might include
advertising another product with the same brand name, sponsoring
community events, issuing public service announcements, or sponsoring
sports teams. All of these activities technically do not violate the ban on
direct advertising, but they still get consumers familiar with the company's
branding. Surrogate advertising may also be used when companies want to
cultivate an image of social responsibility. For example, many health
advocates have criticized advertisements for sweet treats aired during
children's cartoons. A company might pull outright advertising during
these time slots and instead air a series of public service announcements
about eating a balanced diet, with the announcements coincidentally
bearing the company's branding.

28
Pharmaceuticals are another product with advertising restrictions.
Historically, pharmaceutical companies were not allowed to advertise
prescription medications at all. Once this regulation was relaxed, some
restrictions were left in place. Using

surrogate advertising allows companies to get around regulations. For

instance, the manufacturer of an asthma medication might sponsor
informational commercials about managing asthma, with the medication
branding scattered throughout the advertisement to get consumers used to
the brand and to imply that the medication plays an important role in
managing asthma.

29
 COMPANIES FOLLOWING SURROGATE
MARKETING

SURROGATE
LEGITIMATE BUSINESS ADVERTISEMENT

Mc Dowells Walt whisky Mc Dowells soda/water

Radico khaitans 8 pm
whisky Radico khaitans water

Haywards 500 beer Haywards soda/water

Derby special Derby special soda

Bacardi blast cds and

Bacardi liquor cassettes

Bagpiper liquor Bagpiper soda and cassettes

Four square white water

Four square cigarettes rafting

Kingfisher bottled drinking

Kingfisher beer water

30
Smirnoff vodka Smirnoff cds and cassettes

Red and white bravery

Red and white cigarettes awards

Pan Parag gutka Pan Parag pan masala

Rajnigandha tobacco mix Rajnigandha pan masala

Chaini Khaini Chaini Chaini pan masala

Gopal Zarda Gopal Supari 132

Pataka 502 Bidi Pataka 502 Tea

31
SURROGATE ADVERTISEMENTS
PROMOTED BY LIQUOR AND TOBACCO
INDUSTRY

The liquor industry is a prominent player in this game. Few surrogate

advertisements shown in print, electronic and outdoor media are -
Bagpiper soda and cassettes & CDs, Haywards soda, Derby special
soda, Gilbey green aqua, Royal Challenge golf accessories and mineral
water, Kingfisher mineral water, White Mischief holidays, Smirnoff
cassettes & CDs, Imperial Blue cassettes & CDs, Teacher's
achievement awards etc. These products bear exactly the same brand
name and logo, which we had seen earlier in liquor advertisements. It
was little surprising to know that liquor giants like McDowell's and
Seagram's have entered into new segments like cassettes & CDs,
mineral water, sports accessories etc. Later it was found that the basic
aim of these surrogate advertisements was to promote their liquor
brands like beer, wine, vodka etc. This brand extension is an act of
bypassing the advertisement ban.

A similar trend is followed by companies making Cigarettes, Paan

Masala and Gutkha. Few examples of surrogate advertisements in this
category are - Red & White bravery awards, Wills lifestyle, Four
Square white water rafting, Manikchand awards etc. Though a ban has
been imposed on advertisements endorsing tobacco products, this
industry has resorted to surrogate advertising a few years ago. The
Health Ministry has recently implemented the tobacco control
legislation which will imply a complete ban on advertisements and all
direct & indirect promotional campaigns for tobacco products.
Previously, Indian Tobacco Company (ITC) had voluntary withdrawn
the Wills Sports sponsorship of the Indian cricket team when the

32
Government had first proposed a ban on advertising through
legislation.

THE CORPORATE STANDPOINT

The industry segment has its own standpoint in defence. The liquor
lobby claims that everything is in accordance to the Government
regulations. "If a brand has equity, why shouldn't it be allowed to
advertise? Also, brand extension is an industry practice adopted by
different product categories," comments Alok Gupta of UB group.
"When we advertise our products, we follow all the guidelines,"
declares president, sales & marketing, Radico Khaitan. They clarify
that they have stopped showing liquor advertisements and they are free
to use the brand name for any other products. Even the Confederation
of Indian Alcoholic Beverages Companies (CIABC) advertising code
maintains that advertisement of products (real brand extensions) by the
liquor industry must be allowed.

From a layman's point of view, their claims seem to be justified. But

this is a clear example of taking advantage of the loopholes. There is a
point to ponder. When they have stopped showing liquor
advertisements, why the same brand name and logo is used to promote
products like cassettes & CDs or mineral water? They could have
assigned different brand names. It seems they have a hidden agenda of
highlighting the liquor or tobacco brand.
A similar tussle over the issue of surrogate advertisements in politics
was raised in April 2004 on the eve of Lok Sabha elections.
Complaints of slanderous and offensive advertisements were raised by
two major political parties - BJP and Congress against each other. The
issue became so serious that the Supreme Court had to interfere in this

33
affair. Finally, on 13 April 2004, the Court gave a verdict to curb smear
advertisements on electronic media. By appointing Election
Commission as referee, the court has tried to put an end to surrogate
advertising in politics.

According to the Cable Act under the ministry of information and

broadcasting, - "no broadcaster is permitted to show an advertisement
which promotes directly or indirectly, sale or consumption of
cigarettes, tobacco products, wine, alcohol, liquor or other
intoxicants" Now a new clause has been added under the act stating
that "any advertisement for a product that uses a brand name which is
also used for cigarette, tobacco product, wine, alcohol, liquor or any
other intoxicant will not be permitted". Finally, in April 2005, the
ministry resorted to a ban on surrogate advertisements of liquor and
tobacco products on television. After this directive, the surrogate
advertisements are seldom shown on television. Now the companies
will have to reframe their policies. But who will take care of print and
outdoor media is not certain.

According to ASCI (Advertising Standards Council of India), surrogate

advertisements are harmful. Now it will be up to the ASCI to take up
the matter with the respective companies. The consumer affairs
ministry is looking to curb surrogate advertising by alcohol and
tobacco companies as brand and lifestyle extensions. The government
is increasingly becoming serious about dealing with the issue of
misleading ads. It appointed the Advertising Standards Council of
India (ASCI) as its executive arm last week.

Persons in the know say the ministry is pushing amendments to the

Consumer Protection Act, 1986, to prevent companies from indulging
in surrogate advertising. "The view held by the ministry is that
surrogate advertising is misleading since its intention is basically to

34
promote the flagship brand rather than the extension," said Bejon
Misra, noted consumer rights activist, also on the consumer complaints
council of the ASCI, a core group within the regulatory body that
meets twice a month to redress complaints received against false and
misleading ads. Misra, along with a few other consumer rights groups,
has made presentations to the government in the past asking it to look
into the issue of surrogate advertising. At an ASCI seminar in the city
last week, Keshav Desiraju, secretary, consumer affairs ministry, had
indicated his ministry was working to curb surrogate ads.

Regulations prevent advertising of liquor and tobacco products on

television. In the past few months, the government's stance has become
tougher in the case of tobacco, with an experts' committee constituted
by the Union health ministry in October 2014 coming out with various
recommendations, including a ban on advertisements of tobacco
products at points of sale. The health ministry had also come out with a
draft note around the same time asking companies to stamp health
warnings across 85 per cent of the surface of cigarette packs. This is
yet to be implemented. However, liquor and cigarettes remain the most
taxed products in the country in an attempt to reduce consumption.

SURROGATE ADVERTISING: EMERGING

TREND
A recent series of hoardings led me to delve into a very unique trend
specific to Indian advertising Surrogate advertising a trend which
is fast catching up and has suddenly attracted a lot of innovative and
creative brains around the country.

35
Reason? On one hand, the government cannot allow public advertising
of liquor companies. But ironically, liquor and cigarette sales are the
biggest revenue generators in terms of taxes and duties on these items.
Thats why an overt acceptance of the marketing in these sectors is not
legally acceptable. This has led to one of the biggest ironies of the
country Sales of these items are not banned, yet advertising on the
same has strictly been prohibited!

Talking about the market size and the different segments would not be
pertinent to the discussion (for the records, it is more than 100 million
cases in India!). But what is the significance of this trend vis--vis the
entry points for new players and sustainability of existing ones?
Multinationals which would like to explore the Indian markets find the
double-faced attitude of the government as an impediment to their
ventures. Since no policy has been formalized in this regard, foreign
companies continue to be sceptical about their entry. Domestically, it
has led to innovative ways and methods of spending on different media
for Advertising from the companies, where companies do more of a
brand building exercise than direct advertising. Be it promotions for
brand building, or sponsoring events that can be mapped with the
showbiz and glamour of the brand, advertisers dont leave many
avenues to enhance their visibility.

The rule says Advertisements which lead to sale, consumption and

promotion of liquor should not be allowed. So, in Surrogate
Marketing, a product which is different from the main product is
advertised, and has the same brand name as the main product. The
product is called as surrogate and advertising through this channel is
called Surrogate Advertising! It may include CDs, water, clothing,
Apple juice, fashion accessories, sports goods or even events
sponsoring!

36
These gimmicks, in turn, help the consumers build a strong equity of
the parent brand, and with the enhanced visibility, the equity of the
brand would definitely become higher! Liquor companies were forced
to look at innovative ways of building their brands. With an objective
of enhancing brand recall, companies either engage into surrogate
advertising or displaying socially responsible messages.

Again, out of the two viable options for Advertising, Surrogate

Advertising has been surrounded by controversies and legalities for a
long time. There is no clear policy from the government for obvious
reasons and companies do not want to risk their investments on Ads,
which might not be screened after a while.

So, a safer choice available where companies can exercise their grey
cells is advertising socially responsible messages. Take a look at
these billboards which I noticed on a private flyover a few days back.
There is also another print ad in continuation with the Johnnie Walker
billboard.

37
 Must say, this is one of the best elements of innovation that I have seen
so far. Though it would be too premature to attribute this to the
industry per se, it has become imperative for the companies to change
their line of thought completely, to work around the system. What are
the other practices companies are looking at?

(a) Companies are getting involved in Sponsorships of events and have

launched their own awards for bravery or lifetime achievements!

(b) Internet advertising has become a lucrative area which has so far not
been delved into. The medium holds a lot of potential to enhance
visibility, and companies have lately realized that.

(c) Catchy jingles have become the norm of the day to ensure that their
brands have a high brand recall.

(d) With restrictions in other marketing elements in terms of pricing and

distribution, companies have ventured into another important element
Packaging. Innovative packaging makes their brands stand out of the
clutter, and most of the Multinationals are revisiting this element in
their brand portfolio.

Though the industry is not healthy for the young consumers, some
processes and laws need to be formalized and established in the
system. Else, innovative workarounds and arm-twisting of laws would
be the norm of the day for the entire liquor industry!

38
CONSUMER PSYCHOGRAPHICS AND
SURROGATE ADVERTISING

'Surrogate advertising' is one of the emerging ethical issues in

advertising in India. This is used as a strategy to advertise products like
liquor or tobacco - the advertisement of which otherwise, is banned in
our country. It relates to advertising by duplicating the brand image of
one product extensively to promote another product of the same brand.
When consumers look at these advertisements, they associate these
with banned products. Hence, such products are indirectly advertised,
and therefore, influence their behaviour. There is no doubt that the
hidden call for alcohol consumption behind the surrogate
advertisements is not escaping the eyes of viewers of the world's fourth
highest liquor consuming country. Hence, surrogate advertising defeats
the very purpose of banning liquor advertisements. The central issue of
the ethical discussion in the present study is regarding the attitude of
targeted consumers towards the practice of surrogate advertising vis--
vis their psychographic profile towards advertising in general. The
psychographics of the target audience are important to be discussed
since they are the final evaluators of advertising. The study concludes
that surrogate advertising is not perceived positively by the various
sections of the society. Though there were some positive perceptions
found for this practice, on the whole, the attitude of most of the
targeted consumers, i.e., the respondents were more dominating
towards the negative side for the surrogate advertising and they
consider it to be an unethical practice. The ethical perception of the
targeted consumers affects the acceptability of surrogate
advertisements and hence, the attitude of the consumers towards it,

39
with majority of these consumers considering it as immoral and
unethical. The implications thus, are left for the advertisers to modify
and redesign their advertising strategies in accordance to the consumer
psychographics, so that they can find a way out which is more ethical
and positive for the society or their target market rather than resorting
to surrogate advertising.

Impact of Surrogate Advertisements on Children

Each day 55,000 children in India start

using tobacco, Gutkha the chewable
tobacco is aimed at the younger
generation of the country. But you may
wonder how these companies manage
to reach the minds of these children

40
when they are not allowed to advertise these products.

After the ban the companies opened their doors to surrogate

advertisement, an advertisement has the logo or brand of another
company advertised within it. Lets take a look at this report done by a
French channel on surrogate advertisements done in India.

One of the biggest surrogate advertisement market is the film Industry

Bollywood, 89% of all the released movies had smoking scenes in
them. Below is a small documentary on smoking in movies, with
interesting statistics on the current scenario in India with regards to
smoking.

According to research done by the Salaam Bombay Foundation, 3260

children between the age of 12 to 17 years from municipal and private
schools were asked to fill out a self-administered questionnaire.

When asked to recall slogans of any tobacco company or brand

71% recalled Manikchand Oonche log, oonchi pasand

12% recalled Goa Yahan bhi Khilate hain, whan bhi , Goa No 1

2% recalled Sanket

0.4% recalled Shimla

15% recalled other brands

41
When asked to associate slogans with brands 63% could associate the
slogan while 37% could not. What kind of a message will a child get
from, Oonche log, oonchi pasand

Some of the observations learnt through this research is that, Gutkha

advertising has had a deep impact on the minds of children although it
has been banned since August 2002. As children cannot easily
disassociate Manikchand Water from Manikchand Gutkha, tobacco
manufacturing companies should not be allowed to use surrogate
advertisements. TV and radio are the hotspots as to where these
messages are broadcasted to the children.

Legal concern Blanket Ban on "Surrogate Advertising"

An advertisement unmistakably and profoundly directs ones life. The

extent to which advertisements persuades a person depends upon its
pushing publicity. The adverse impact of advertisements of unhealthy
products is a matter of concern for this hour. Impact of tobacco, liquor,
cigarettes is far alarming than we can think for ones health. Due to the
widespread unfavourable impact of advertisement of unhealthy
products, Indian government has always struggled and strived to curb
or at least restrict rampant advertisements of such products by
appropriate legislations.

Result to the directive of Government to ban advertisements of

products that are averse to health, the major companies of liquor &
tobacco sought other ways of endorsing their products. They have
found an alternative path of advertising through which they can keep
on reminding the people of their liquor/tobacco brands. They have
introduced various other products with the same brand name.

42
The problem occurs when heavy advertising is done so that the
customers do not forget their liquor & tobacco brands, for which
advertisements are banned. The advertisements for such new products
are placed under the category of "Surrogate Advertisements".
Surrogate advertising (duplicating the brand image of one product
extensively to promote another product of the same brand), has become
commonplace. Their only objective is to compensate the losses arising
out of the ban on advertisements of one particular product (i.e. liquor).
The companies can always claim that the order is being implemented
and advertisements of liquor are banned, but the objective of the
Government behind imposing the ban is not fulfilled. A new weapon of
Fill-in or replacement war.

Surrogate advertisement by Companies

Players in tobacco industry - Wills lifestyle, Four Square white water
rafting, etc. Players in liquor industry Kingfisher beer, airlines and
mineral water, Royal Challenge golf accessories and mineral water,
Bagpiper soda and cassettes & CDs, Haywards soda, White Mischief
holidays, Smirnoff cassettes & CDs, Teacher's achievement awards,
Imperial Blue cassettes & CDs etc.

43
Chapter 3

INDUSTRY ANALYSIS
THE ADVERTISING INDUSTRY

44
3.1 ADVERTISING

Introduction

Advertising is a non-personal form of communication intended to

persuade an audience (viewers, readers or listeners) to purchase or take
some action upon products, ideals, or services. It includes the name of
a product or service and how that product or service could benefit the
consumer, to persuade a target market to purchase or to consume that
particular brand. These brands are usually paid for or identified
through sponsors and viewed via various media. Advertising can also
serve to communicate an idea to a mass amount of people in an attempt
to convince them to take a certain action, such as encouraging
'environmentally friendly' behaviours, and even unhealthy behaviours
through food consumption, videogame and television viewing
promotion, and a "lazy man" routine through a loss of exercise.
Modern advertising developed with the rise of mass production in the
late 19th and early 20th centuries. Mass media can be defined as any
media meant to reach a mass amount of people. Several types of mass
media are television, internet, radio, news programs, and published
pictures and articles.

Commercial advertisers often seek to generate increased consumption

of their products or services through branding, which involves the
repetition of an image or product name in an effort to associate related
qualities with the brand in the minds of consumers. Different types of
media can be used to deliver these messages, including traditional
media such as newspapers, magazines, television, radio, outdoor or
direct mail; or new media such as websites and text messages.

45
Advertising may be placed by an advertising agency on behalf of a
company or other organization.

Non-commercial advertisers that spend money to advertise items other

than a consumer product or service include political parties, interest
groups, religious organizations and governmental agencies. Non-profit
organizations may rely on free modes of persuasion, such as a public
service announcement.

Advertising spends in India are expected to grow 15.5% year on year

to Rs 57,485 crore in 2016, according to estimates from media buying
agency Group. Of this, Digital Advertising spends will account for Rs
12.7% of total spends at around Rs 7,300 crore. Digital is the third
highest category of advertising spends, albeit lagging far behind TV
(Rs 27,074 crore, 47.1% of total) and Newspapers (Rs 17,099 crore,
29.9% of total). Of all the segments, magazines are expected to decline
for a third consecutive year, down by 14.8% year on year, and to
around 1% of total advertising spends.
advertising expenditure is on course to grow 4.6% to $579 billion this
year worldwide.

THE AD INDUSTRY TRANSITION

Advertising agencies are the link between the product and the market.
They cannot be classified as just one service provider. As they provide
a bundle of services to make and build a brand.

46
Advertising agencies first began as space selling agencies. They would
buy space in bulk, then sell it and live on the commission gained.
Slowly they began to give the client more than just one service. Media
began to creep in. And slowly the creative personnel too were made the
pillars of the organization. Today advertising agencies give the clients
a 3600 view of their product.

HOW AN AD AGENCY FUNCTIONS?

First the brief is provided by the client that is brought into the company
by the client servicing personnel. The brief is about what the client
needs to communicate to his target audience. Target audience is
categorized according to their income, consumption, purchasing power
etc. Once the target audience for a particular product is identified the
strategy to communicate the product is taken on. The strategies are
carefully planned by strategic planners and then communicated to the
creative. The creative team then takes on the task on how best to
communicate the necessary to the common people. Smart headlines,
attractive visuals are then brainstormed among the creative personnel.
Finalized ideas are given birth to on paper, which are then presented to
the client.

Deliberations, presentations follow in the conference room and the

final ad to be released is settled upon. Sometimes rework is demanded,
sometimes corrections are given until the ad is finalized. The estimate
for media releases as requested is placed before the client. In-depth
planning is undertaken for colossal product releases. The media too
works on the estimate for days to finally sum up on the release plan
that will give the product and the client maximum reach.

47
On release of the ads, feedback from the clients end is anxiously
awaited by the agency. A good response to the ad only elevates the
relationship between the client and the agency and stands as a
motivator for some more good work.

DIFFERENT TYPES OF ADVERTISING

Television Advertising

The TV commercial is generally considered the most effective mass-

market advertising format, as is reflected by the high prices TV
networks charge for commercial airtime during popular TV events. The
annual Super Bowl football game in the United States is known as the
most prominent advertising event on television. The average cost of a
single thirty-second TV spot during this game has reached US$3
million (as of 2009).

The majority of television commercials features song or jingle that

listeners soon relate to the product.

Virtual advertisements may be inserted into regular television

programming through computer graphics. It is typically inserted into
otherwise blank backdrops or used to replace local billboards that are
not relevant to the remote broadcast audience. More controversially,

48
virtual billboards may be inserted into the background where none
exist in real-life. This technique is especially used in televised sporting
events. Virtual product placement is also possible.

Infomercial

An infomercial is a long-format television commercial, typically five

minutes or longer. The word "infomercial" is a portmanteau of the
words "information" & "commercial". The main objective in an
infomercial is to create an impulse purchase, so that the consumer sees
the presentation and then immediately buys the product through the
advertised toll-free telephone number or website. Infomercials
describe, display, and often demonstrate products and their features,
and commonly have testimonials from consumers and industry
professionals.

Radio advertising

Radio advertising is a form of advertising via the medium of radio.

Radio advertisements are broadcasted as radio waves to the air from a
transmitter to an antenna and a thus to a receiving device. Airtime is
purchased from a station or network in exchange for airing the
commercials. While radio has the obvious limitation of being restricted
to sound, proponents of radio advertising often cite this as an
advantage.

Press advertising

Press advertising describes advertising in a printed medium such as a

newspaper, magazine, or trade journal. This encompasses everything
from media with a very broad readership base, such as a major national

49
newspaper or magazine, to more narrowly targeted media such as local
newspapers and trade journals on very specialized topics. A form of
press advertising is classified advertising, which allows private
individuals or companies to purchase a small, narrowly targeted ad for
a low fee advertising a product or service.

Online advertising

Online advertising is a form of promotion that uses the Internet and

World Wide Web for the expressed purpose of delivering marketing
messages to attract customers. Examples of online advertising include
contextual ads that appear on search engine results pages, banner ads,
in text ads, Rich Media Ads, Social network advertising, online
classified advertising, advertising networks and e-mail marketing,
including e-mail spam.

Billboard advertising

Billboards are large structures located in public places which display

advertisements to passing pedestrians and motorists. Most often, they
are located on main roads with a large amount of passing motor and
pedestrian traffic; however, they can be placed in any location with
large amounts of viewers, such as on mass transit vehicles and in
stations, in shopping malls or office buildings, and in stadiums.

Mobile billboard advertising

Mobile billboards are generally vehicle mounted billboards or digital

screens. These can be on dedicated vehicles built solely for carrying
advertisements along routes preselected by clients, they can also be

50
specially equipped cargo trucks or, in some cases, large banners strewn
from planes. The billboards are often lighted; some being backlit, and
others employing spotlights. Some billboard displays are static, while
others change; for example, continuously or periodically rotating
among a set of advertisements.

In-store advertising

In-store advertising is any advertisement placed in a retail store. It

includes placement of a product in visible locations in a store, such as
at eye level, at the ends of aisles and near checkout counters, eye-
catching displays promoting a specific product, and advertisements in
such places as shopping carts and in-store video displays.

Covert advertising

Covert advertising, also known as guerrilla advertising, is when a

product or brand is embedded in entertainment and media. For
example, in a film, the main character can use an item or other of a
definite brand, as in the movie Minority Report, where Tom Cruise's
character John Anderton owns a phone with the Nokia logo clearly
written in the top corner, or his watch engraved with the Bulgari logo.

Celebrities

This type of advertising focuses upon using celebrity power, fame,

money, popularity to gain recognition for their products and promote
specific stores or products. Advertisers often advertise their products,
for example, when celebrities share their favourite products or wear

51
clothes by specific brands or designers. Celebrities are often involved
in advertising campaigns such as television or print adverts to advertise
specific or general products.

The use of celebrities to endorse a brand can have its downsides,

however. One mistake by a celebrity can be detrimental to the public
relations of a brand. For example, following his performance of eight
gold medals at the 2008 Olympic Games in Beijing, China, swimmer
Michael Phelps' contract with Kellogg's was terminated, as Kellogg's
did not want to associate with him after he was photographed smoking
marijuana.

Overview of Advertising Industry in India

The structure of the advertising industry in Asia Pacific has been

affected by globalisation and international alignments creating a
smaller number of very large agencies and the growth of independent
major media buying houses. Very sophisticated software optimisation
and planning systems are now integral to the industry, enabling
agencies to offer a unique positioning in the marketplace to attract new
business.

American companies are discovering the appeal of marketing their

products in India. With a population of approximately one billion, and
a middle class that's larger than the total population of the United
States, there's definitely money to be made. Local retailers in apparel,
food, watches and jewellery have all increased their average ad
spending by almost 50% in the past four years. Coupled with many
other local players big retailing brands are spending to the tune of Rs
12,000 crores annually on advertising and promotional activities. This

52
 figure, according to industry estimates, was less than Rs 400 crores
about 3 years ago. This means the growth has been a whopping 40%.
The local firms are using all the available advertising tools from
electronic to print, outdoor advertising and even models. The
advertising and promotional spending by local brands is substantial
during the festival season and almost 70% of the spending is done
between September to January. The advertising industry in India is
growing at an average rate of 10-12% per annum. Over 80% of the
business is from Mumbai and Delhi followed by Bangalore and
Chennai.

Online Ad Spending in India

Online advertising spending is holding its own and will continue to

grow steadily over the next several years. Marketers are responding to
the economic challenges with new techniques and strategies, along
with research data to prove their effectiveness. According to statistics,
online ad spending has reached $25 billion. Nonetheless, nearly three-
quarters of web advertising space goes unsold and more than 99.7 per
cent of banner ads are not clicked on.

Scope of Advertising Industry in India

The advertising industry in India has several competitive advantages:

India has a rich pool of strategic planning, creative and media services
personnel: Indeed, Indian advertising industry has been exporting

53
 senior-level talent to many countries, particularly to the Gulf, South-
East Asia, China, the UK and the US. Indian talent is recognised and
respected in global agency networks.

No other country has access to so many trained management graduates

who can provide strategic inputs for brand and media planning.

Indians are multicultural: we learn at least two languages and that gives
us a head start in understanding cultural diversity.

Most of the top 20 agencies in India have a global partner or owner,

which should provide an immediate link to global markets.

Our production standards in TV and print have improved: With a vibrant

animation software industry, we have access to this area of TV
production.

India's advanced IT capabilities can be used to develop Web-based

communication packages for global clients.

The Indian advertising industry is a very upcoming and promising

sector. However, there is severe competition and survival is for the
fittest and the best. In this sector what matters the most is knowledge
and experience of the work and the industry and its functioning. The
more the knowledge you can provide the better the productivity you
give.

The various departments in an ad agency

The number of departments varies from agency to agency depending

on their size. However, the main divisions are as follows:

54
 Account Servicing:

The advertising industry in India has several competitive advantages:

India has a rich pool of strategic planning, creative and media services
personnel: Indeed, Indian advertising industry has been exporting
senior-level talent to many countries, particularly to the Gulf, South-
East Asia, China, the UK and the US. Indian talent is recognised and
respected in global agency networks.

No other country has access to so many trained management graduates

who can provide strategic inputs for brand and media planning.

Indians are multicultural: we learn at least two languages and that gives
us a head start in understanding cultural diversity.

Most of the top 20 agencies in India have a global partner or owner,

which should provide an immediate link to global markets.

Our production standards in TV and print have improved: With a vibrant

animation software industry, we have access to this area of TV
production.

India's advanced IT capabilities can be used to develop Web-based

communication packages for global clients.

The Indian advertising industry is a very upcoming and promising

sector. However, there is severe competition and survival is for the
fittest and the best. In this sector what matters the most is knowledge
and experience of the work and the industry and its functioning. The

55
more the knowledge you can provide the better the productivity you
give.

Client servicing is a crucial part of the advertising industry. The main

aim of this department is to generate customers and business for the
company and also develop the existing customer relationships. This
department also covers the responsibilities of the public relationship
officers. Advertising can be done through television media, print media
and the internet. Similarly, client
servicing for the customers is mostly done by using the internet as the
medium. A lot of advertisements are campaigned by using internet and
email promotions. A client servicing agent would also need to design
new schemes to attract many companies to take their offer. Pricing and
design models of the offer are also covered by this department. To be
able to design good ad campaigns, the agent should also be capable of
doing appropriate online research. This job also needs the person to be
creative and progressive. The person should be abreast of the industry's
changing facets.

Account Planning:

Account planners combine research and strategic thinking. If the

account manager is closest to the client, the account planner is closest
to the consumer. The account planner is the person on an advertising
team who is most likely to have spent time with consumers using the
product, or in focus groups asking them about how they think about the
product. And in an era in which the brand is sometimes at least as
important as a specific product (for instance, Nike as a brand has a
place in the culture that far exceeds the particular performance
characteristics of their shoes), the account planner is responsible for
understanding the place of the brand in the consumer imagination.
They are different than a simple research function in that they stay

56
engaged in the campaign process throughout. Rather than offering
research insights to others at a single point in time, they use research to
continue to provide insights within the campaign process.

Creative Department:

The people who create the actual ads form the core of an advertising
agency. Modern advertising agencies usually form their copywriters
and art directors into creative teams. Creative teams may be permanent
partnerships or formed on a project-by-project basis. The art director
and copywriter report to a creative director, usually a creative
employee with several years of experience. Although copywriters have
the word "write" in their job title, and art directors have the word "art",
one does not necessarily write the words and the other draw the
pictures; they both generate creative ideas to represent the proposition
(the advertisement or campaign's key message). Creative departments
frequently work with outside design or production studios to develop
and implement their ideas. Creative departments may employ
production artists as entry-level positions, as well as for operations and
maintenance. The creative process forms the most crucial part of the
advertising process.

As the project was part of the client servicing team at O & M, a small
brief on what client servicing is all about, how it functions, the various
key positions and the importance of the Client servicing team in an Ad
company is mentioned below.

THE CLIENT SERVICING TEAM

57
The Client Servicing department is the link between the client and the
agency. It is an important part of any advertising firm like what the
heart is to the body. This department is responsible for meeting
prospective clients and getting business for the company. It involves a
study of the client, the product and the market; an analysis of consumer
behaviour and marketing; knowledge of all available media and their
cost effectiveness, and a strategic plan to be presented to the client.
Those in client servicing must therefore interact with clients, gather
information, oversee research where necessary, gauge consumer
attitudes and based on this, work along with the various departments of
the agency to formulate the most appropriate and effective advertising
strategy within the specified budget. To be an effective client-servicing
person, the candidate has to have a thorough knowledge of the client's
business and also know his weak points so that, through advertising
and communications, the gap can be minimized.

An accounts executive who works in the client servicing department

takes care of all the monitory dealings. He should know the most
effective way to advertise clients product or service i.e. the media and
their cost effectiveness. Account executives should also have an idea
about market research and target audiences.

Client servicing is a crucial part of the advertising industry. The main

aim of this department is to generate customers and business for the
company and also develop the existing customer relationships. This
department also covers the responsibilities of the public relationship
officers. Advertising can be done through television media, print media
and the internet. Similarly, client
servicing for the customers is mostly done by using the internet as the
medium. A lot of advertisements are campaigned by using internet and
email promotions. A client servicing agent would also need to design
new schemes to attract many companies to take their offer. Pricing and

58
design models of the offer are also covered by this department. To be
able to design good ad campaigns, the agent should also be capable of
doing appropriate online research. This job also needs the person to be
creative and progressive. The person should be abreast of the industry's
changing facets.

Advertising Client Servicing Education

The main role of client servicing agent is selling. He or she would need
to sell the products and packages of the company. For this, a degree in
Marketing or an MBA is required. These are the basic qualifications.
However, an added knowledge of Computers, Microsoft Office tools
and other qualifications in multimedia design is also crucial for the job
functionalities.

The MBA degree is a must because the person performing this role
needs to have the industry knowledge and also technical knowledge of
the market dynamics in order to be able to design and modulate good
packages for the company. An additional education in Public Relation
Skills could also very helpful to perform the job role. A person opting
for this role could choose to do additional advertising courses after
completing their MBA to take up a job in the client servicing industry.

Advertising Client Servicing Skills

The key skills required to perform this job role are mainly used in
business development and client servicing. The business development
aspect of the job would need the person to talk to new customers and
prospect new business for the company. This would require the person
to have excellent verbal communication skills, as well as a convincing
ability and marketing tactics to be good at the job. The job prospects

59
are high in the client servicing industry and a person can hope to go to
higher levels using their verbal skills.
A person doing this job should have a dynamic personality. The client
servicing part of the job would also require all of the above mentioned
qualities in a person, and simultaneously the person should also have
problem solving abilities. This role mainly involves keeping good
relations with existing customers and making them continue with the
business and also prospect for more business. The majority of
relationship management is done by the personnel of this department.

Advertising Client Servicing Role

The job roles in this department are Account servicing manager and
executives, Account managers, and marketing executives. An account
would be company specific.
Big advertising companies treat each individual company as an account
for example like a Pepsi Account, or a Coca Cola account. An account
manager would be a person who is handling all the needs of that
specific company and also improving the business aspects
simultaneously.

Advertising Client Servicing Benefits

The benefits of this job role are that the person working in client
servicing can improve their business contacts and also earn a good
reputation among the fellow business community. These people are the
first contact and are the main relationship managers, so they can have
many contacts in the industry which will help them in the future.

60
Chapter 4

THE COMPANY PROFILE

61
 OGILVY AND MATHER INDIA LTD.

Ogilvy & Mather is an international advertising, marketing and public

relations agency based in Manhattan and owned by the WPP Group.
The company operates 497 offices in 125 countries with approximately
16,000 employees.

Ogilvy & Mather's services include advertising, public relations, direct

marketing, and digital media. Within the company there are a number
of units that handle different areas of focus. Ogilvy Public Relations is
responsible for the agency's public relations offerings,
including branding, public affairs, corporate communication,
and digital reputation and influence. Ogilvy One is the agency's direct
marketing unit. It also advises clients on customer engagement. The
firm's Ogilvy CommonHealth Worldwide unit focuses on healthcare
communications and marketing. The agency handles production work
through Hogarth & Ogilvy, a joint venture between Ogilvy & Mather
and Hogarth Worldwide, formed in 2015. Neo@Ogilvy is a unit of the
agency that offers digital media services to all of Ogilvy & Mather's
disciplines. As of 2013, sales activation and shopper marketing are
administered through Geometry Global, a unit formed through the
merger of several WPP agencies, including what was previously
known as Ogilvy Action.

Ogilvy & Mather India created the slogan "Incredible India" for the
country's Ministry of Tourism in 2002. The campaign targeted an
international audience and aimed to boost tourism. The initial
advertisements highlighted the breadth of Indian culture and resulted in

62
an increase of two-to-three million tourists per year. As of 2016, the
slogan is still in use.

History

Ogilvy & Mather was founded in 1948 by David Ogilvy, as "Hewitt,

Ogilvy, Benson, & Mather" in Manhattan. The company became a
leading worldwide agency by the 1960s. Central to its growth was its
strategy of building brands such as American Express, BP, Ford,
Barbie, Maxwell House, IBM, Kodak, Nestl, and Unilever brands
Pond's and Dove.

Ogilvy & Mather was built on Ogilvy's principles, in particular, that

the function of advertising is to sell and that successful advertising for
any product is based on information about its consumer.

His entry into the company of giants started with several iconic
campaigns:

"The man in the Hathaway shirt" with his aristocratic eye patch; "The
man from Schweppes is here" introduced Commander Whitehead, the
elegant, bearded Brit, bringing Schweppes and ("Schweppervesence")
to the U.S.; "At 60 miles an hour the loudest noise in this new Rolls-
Royce comes from the electric clock"; and "Pablo Casals is coming
home to Puerto Rico", a campaign that Ogilvy said helped change the
image of a country and was his proudest achievement.

One of his greatest successes was "Only Dove is one-quarter

moisturizing cream". This campaign helped Dove become the top
selling soap in the U.S.

63
In 1989 The Ogilvy Group was purchased by WPP Group.

AIMS AND OBJECTIVES

Ogilvy & Mather aims to create Great Work, That Works to solve
client issues. The business environment is rapidly changing due to the
technological evolution. We aim to drive changes, solve issues, and to
promote business growth.
We have worked on the reform mainly in the creative and digital
disciplines since 2012. The reform is steadily bearing fruit. For
example, our creative work is often picked up by domestic and
international media. While the number of projects from existing and
new clients is rapidly increasing.
In August 2014, to enhance our flexible proposal capabilities
responding to the POE era, we fully renovated the office space.
We will have our 20th anniversary next year. We will continue to
provide effective and fully creative proposals with a single-minded
goal of maximizing the client profit without being bound by the
business practice of Japanese advertising industry and placing
disproportionate weight on specific media.
Ogilvy & Mather

64
 Clients

The major clients of O&M are: -

American Express Kraft

Amway Lenovo
British Gas Mattel
BP MetLife
Citizens Financial Motorola
Group Nestle
Cisco NexCen Brands
Coca-Cola Company SAP
DHL Siemens
DuPont TABASCO
Gap Tobacco Institute
Gillette Unilever (Parent
GlaxoSmithKline Company)
IBM Vodafone
Kodak Ford Motor Company
Adidas Intel Corporate

65
 OGILVY AND MATHER INDIA LTD: AT A
GLANCE

A subsidiary of WPP Group. Global revenues US$ 4. 9 billion

One of Indias leading advertising agencies, 800 employees, over

300 domestic and MNC clients. O&Ms Internationals 5th largest
operation in terms of profit.

Ranked Indias number one agency by Brand Equity survey on

leadership, creative ability, investment in employees, client servicing,
most influential people and hottest creative directors.

Factors for success: Quality human resources, first mover

advantage in introducing global practices

For O&M, India is: a global sourcing hub for creative and non-
creative services. Have back office operations in Bangalore

Future plans India: Increase operations for the global clientele.

Establish development centres for database marketing, B2B
communications and creative international clients.

66
OBJECTIVES
OF
O AND M

67
 WHAT OGLIVY AND MATHERS CAN DO

We offer our clients the following six benefits

Ogilvy & Mather Japan breaks through the conventions and
stereotypes of Japanese advertising to provide innovative services that
go beyond typical media and communication techniques.
1. World-class creative works
We put the emphasis on high quality and world-class creative work
which messages can be reached deep inside consumers. What creative
work wins the hearts and minds of people varies by market. Even for
global clients, we sometimes develop our unique expression without
being bound by global creative work.
2. One-step ahead digital marketing
With the penetration of the smartphone and social media, the amount
of information consumers can receive has dramatically increased. This
has made their purchase behaviour even more complicated than ever
before. Now it is even more complex to analyse a consumers purchase
behaviour to develop a brand engagement strategy.
Ogilvy & Mather draws upon the MOT (moment of truth), which is the
important moment in the optimal purchase behaviour, when proposing
an effective customer engagement and digital marketing strategy.
Using our knowledge and best practises accumulated through the use

68
 of accumulated data within the global network enables us to contribute
to your business growth. The Social@Ogilvy team in the Ogilvy &
Mather Group is the worlds largest media strategist network. It
consists of social media and digital experts from around the world. In
this network, experts of social media marketing, social shopping, social
CRM, social listening and analytics work with each other to offer
social solutions.
3. Well-balanced IMC and SOE strategies without placing

disproportionate weight on specific media or channel

Most Japanese advertising agencies work on the business principle of
making profit by selling media.
This makes their media selection biased towards making profit. We
choose the media, be it digital, social, TV, newspaper web, In- store,
OOH and PR, that best relates to the clients needs.
We can do this as our business model doesnt rely on our media buying
making us profit. This idea of media neutrality, means our relationship
with clients is very different from our competitors who use this
practise.
We set out to clearly understand the clients needs, to determine what
the issues are, their targets and future image, to propose media and
create proposals that will enable them to continue to grow.
In other words, being media neutral is a method in which we can build
a true partnership between clients and the advertising agency.
4. Flexible team formation to meet client needs
Ogilvy & Mather calls on the best talents among its staff across
disciplines to form a team that can best address a clients issues. All
staff are professionals in specialized fields with brand leaders at the
core. Since a team is not bound to specific communication areas or
organizations, we are able to form the best team in a flexible manner
for all assignments.
This is a major strength of the whole Ogilvy & Mather network.

69
5. Fair and transparent compensation system what Ogilvy

& Mather Can Do

Ogilvy & Mather, having adopted the media neutral mentioned above,
also use the fee system where payment is based on actual working
hours used for planning a project or developing creative work. Not the
commission system based on the media buying. The fee is decided on
the basis of the scope of work, staff involved and the working hours,
clarifying in detail the expected man hours. Therefore, the client can
clearly see where costs incurred for which work and adjust the size and
allocation of costs within their budget.
In some cases, Ogilvy and Mather enters an incentive agreement
known as the contingency fee agreement. Where we make a profit by
the client being successful. By daringly choosing this system, we can
share the motivation with the client. This contributes to us building true
partnerships with our clients.
6. Perspective, talents and knowhow only the global

network can have

Ogilvy & Mather through a network of more than 500 offices in 126
countries provides services to Fortune Global 500 company, Japanese
companies and other organizations. In the network, there are more than
22,000 employees, using more than 50 languages. We provide services
from the global perspective, using the accumulated knowhow and
talents we have working around the world., This is one of Ogilvys
major strengths.

70
HOW IT WORKS AT THE HUB?

71
72
Chapter 5

RESEARCH METHODOLOGY

73
 5. RESEARCH METHODOLOGY:
On defining the objective of the project, a plan was developed to gather
information most efficiently. Decisions were taken on the data sources,
sampling plan, research tools. Research is essentially a systematic
enquiry seeking facts through objective verifiable methods in order to
discover the relationship among them to deduce from them broad
principles of laws.

5.1 TYPE OF STUDY:

As the characteristics of a certain group the certain variables are to be

determined, a descriptive method is chosen for this study. The
descriptive research portrays accurately the characteristics of a
particular individual, situation or a group.

The descriptive research includes surveys and fact enquiries of

different kinds. The major purpose of descriptive research is
description of the state of affairs as it exists at present. The major
characteristic of this method is the researcher has no control over the
variables, he can only report what has happened or what is happening.

Research Area

5.2 SOURCE OF DATA :-

Primary data: it includes data collected directly from the customers in

Mumbai city so as to meet the direct requirements of the investigation
at hand.
Secondary data: it includes data from magazines, websites and
reference books.

5.3 METHOD:

74
 The research is done through a survey in the form of an interaction
with about 14 main questions as points of reference. The interaction is
done with the target group at different places in the Mumbai city.
5.4 SAMPLING TECHNIQUE
Non probability sampling was adopted to conduct the survey.
Customers were selected on the basis of ease of access. So
convenience sampling was carried out for collecting primary data. In
this method a desired number of sample unit is selected deliberately or
purposely depending
upon the object of the enquiry, so that only the important items
representing the true characteristics of the population are included in
the sample.

5.6 SAMPLE SIZE:

A sample size of 30 respondents was interviewed through the

interactive methodology.
The interaction was limited to 5 minutes wherein discussion happened
about the choice of brands, perception about surrogate advertisements.
Also questions related to various brand preferences and their purchase
intention was posed.

5.7 DATA COLLECTION METHOD

Data collection has been done through a very useful & popular survey
method. The survey was conducted through personal interviews to
study the impact of surrogate advertisements on the customers buying
behaviour to buy the surrogate products. To understand each individual
response, the personal interview method is better than other methods
like telephonic interviews, mailing questionnaire etc. Because this
method gives the researcher enough flexibility to ask any other
question which is relevant for research.

75
 5.8 DATA COLLECTION INSTRUMENT

The survey method was used for the research; the personal interviews
were conducted with the help of a structured questionnaire.

5.9 STATISTICAL TOOLS USED FOR ANALYSING

THE DATA

Percentage method
Graphical Representation using Figures & Bar diagram

CRITERIA TAKEN FOR SAMPLES

1. The sample size of 30 is for representative of the population.

2. Respondents have no bias.

3. Only people know surrogate advertisements are taken as samples.

76
Chapter 6

DATA ANALYSIS
AND
INTERPRETATION

77
DATA INTERPRETATION

Analysis of data involves a number of closely related operations that

are performed with purpose of summarizing the collected data and
organizing these in such a manner that they will yield answer to the
research questions. The term analysis refers to the computation of
certain measures along with searching for patterns of relationship that
exist among data group. Interpretation is often inextricably interwoven
with analysis; it should more properly be conceived as a special aspect
of analysis.

Interpretation is necessary for the simple reason that the usefulness and
utility of research findings lie in proper interpretation. The statistical
interpretation shows various responses relating to the variable. The
analysis and interpretation of data lead the researcher to the objectives
of the study. It is through interpretation that the research can well
understand the abstract principle works beneath his findings.

Data Analysis

Percentage Method

6.1 Most seen Media used by the people for watching the
advertisements

78
 C
u
m
u
l
V a
a t
l i
i v
d e
F
r
e P P P
q e e e
u r r r
e c c c
n e e e
c n n n
y t t t

V
a
l
i
d

p
r
i
n
t
m
e 1 1 1
d 5 5 5
i 1 . . .
a 5 6 6 6
R
a 2
d 5 5 0
i . . .
o 5 2 2 8
t
e
l
e
v 5 5 7
i 0 0 0
s 4 . . .
i 8 0 0 8

79
 o
n
I
n
t
e
r 1 1 8
n 5 5 6
e 1 . . .
t 5 6 6 5
M
o 1
b 1 1 0
i 3 3 0
l 1 . . .
e 3 5 5 0
T 1 1
o 0 0
t 0 0
a 9 . .
l 6 0 0

Source: Market Survey

print media

Radio

television

Internet

Findings:

80
50% of the people uses Television, 15.6% for Print media and
Internet,13.5% for Mobile and 5.2% on Radio to Refer the media.

Inference:

The question is to find out the effective means of media advertising,

through which television

advertising is more reachable than any other media advertising.

6.2 How often people watch the advertisements of alcohol

C
u
m
u
l
a
t
i
v
e
V
a
l
i
F d
r
e P P P
q e e e
u r r r
e c c c
n e e e
c n n n
y t t t

V Don
a t 1 1
l rem 9 9 9
i emb 1 . . .
d er 9 8 8 18

81
 Not 7 7 7
at . . .
all 7 3 3 21
4 4
3 3 0
Rar 4 . . .
e 2 8 8 78
1 1
Occ 5 5 6
asio 1 . . .
nal 5 6 6 85
1 1 0
3 3 0
Reg 1 . . .
ular 3 5 5 10
1 1
0 0
0 0
Tota 9 . .
l 6 0 0

Source: Market Survey

50
45
40
35
30
25
20
S
e
r
i
1 e
5 s

82
 1
1
0

0
N
o
t

a
D t
o R
n a a
l r
t l e Occasional Regular
r
Findings: e
m 4
e
m % of
b
Out of 96 e 3 people
r
respondent . were rarely, 19.8% were
s 8 seeing dont

n
o
t
rememberi all,15.6%
ng,7.3% a regularly surrogate
were t seeing advertisements of
alcohol.

83
6.3 Purchase of surrogate Product

C
u
m
u
l
a
t
i
v
e
V
a
l
i
F d
r
e P P P
q e e e
u r r r
e c c c
n e e e
c n n n
y t t t

V N
a e 1 1 1
l v 0 0 0
i e 1 . . .
d r 0 3 3 3
O
c
c
a
si
o 2 2 3
n 8 8 9
al 2 . . .
ly 8 9 9 2
O 3 3 7
ft 9 9 8
e 3 . . .
n 8 2 2 4
R
e 1
g 0
u 2 2 0
la 1 1
rl 2 . . .
y 1 6 6 0
1 1
T 0 0
o 0 0
t 9 . .
al 7 0 0

84
Source: Market Survey
Findings:

From above figure 39.2% people often, 28.9% occasionally, 21.6% regularly,
10.3% never buy surrogate product after see the advertisement on media.

Inference:

Figure shows surrogate products have sufficient m

market by surrogate advertisements.

4
5
4
0
3
5
3
0
2
5
2
0
1 S
5 e
r
i
e
s
1
1
0 6
5
.
0
4
Which Advertisement is remembered most by the people

C
u
m
u
l
a

85
 ti
v
e
V
a
l
i
F d
r
e P P P
q e e e
u r r r
e c c c
n e e e
c n n n
y t t t

V
a 2 2 2
l 5 5 5
i Bacar 2 . . .
d di 4 0 0 0
1 1 3
0 0 5
Smirn 1 . . .
off 0 4 4 4
1 1 4
Royal 3 3 9
Challe 1 . . .
nge 3 5 5 0
4 4 9
1 1 0
Kingfis 4 . . .
her 0 7 7 6
1
0
9 9 0
McDo . . .
wells 9 4 4 0
1 1
0 0
0 0
9 . .
Total 6 0 0

Source: Market Survey

Bacardi

Smirnoff

Royal Challenge

86
 Kingfisher

McDowells

Findings:

Majority of people remember king fisher brand of 41.7 % when compared to

Bacardi, 25.0%; Smirnoff, 10.4 %; royal challenge 13.5% and Mc dowells9.4 %.

Inference:Among above datas people remember Bacardi and kingfisher the

most, as it is shown continuously through several medias. The advertisements
shown will depends on the geographical area they belong to.

6.5 What made the people to remember the Advertisement

C
u
m
u
l
a
t
i
v
e
V
a
l
i
F d
r
e P P P
q e e e
u r r r
e c c c
n e e e
c n n n
y t t t

V
a 3 3 3
l Cele 7 7 7
i briti 3 . . .
d es 6 5 5 5
3 3 6
Crea 1 1 8
tivit 3 . . .
y 0 3 3 8

87
 7
7 7 6
Voic . . .
e 7 3 3 0
1 1 9
Wor 4 4 0
ding 1 . . .
s 4 6 6 6
Log 1
o 0
Fam 9 9 0
iliari . . .
ty 9 4 4 0
1 1
0 0
0 0
Tota 9 . .
l 6 0 0

Source: Market Survey

40

30

20

10

0
Celebrities Creativity Voice Wordings Logo

88
Chapter 7

FINDINGS, CONCLUSION
AND
SUGGESTIONS

89
7.1 FINDINGS

Out of different Medias for advertisement, it is found that television

advertising is more effective and reachable to the customers.

The advertisements of King Fisher and Bacardi are remembered more,
since repeated ads are able to create brand image on such products

Customers identifies the surrogate products in the market, with their
existing brand names of original product.

Its the effective use of celebrities and creativity, the surrogate products
make their product success.

People remind only continuously seen surrogate advertisements, it
means more areas of advertisements to be explored.

Surrogate advertisements induces the customer to try the product,
which means it hit the mind of customer directly.

Companies had to concentrate since customer is looking for ethical

aspects also regarding the surrogate advertisements

90
91
7.2 CONCLUSION
This study had conducted to know the knowledge and perception of
customers about surrogate advertisements in the Delhi city and
analyses the factors for knowing the surrogate advertisement have any
impact on the consumers buying behaviour for buy the surrogate
products. It got understood that the brand is able to make the customers
to purchase the product. During the study a s were analysed that
customers purchasing style has any relation with the surrogate
advertisements shown through medias and to know what interest
elements did the customer find in them in order to use of surrogate
products. The knowledge of customer, their preferences and knowledge
are analysed. The data were filled by questionnaire method.

Its mainly though the brand name of established brands these products
are made to meet the company requirements, i.e.; to make maximum
mileage from the existing brands. Its through the existing brands of
companies were that existing in the market. Moreover, the knowledge
and awareness level about surrogate advertisements were also low, but
when explained them, everybody are known and thus selected for
sampling purpose. The main reasons given by the respondents for not
knowing about most of surrogate advertisements are they are not
exposed to see that many times So, with this research it was concluded
with an underline that effective surrogate advertisements induce the
customer to purchase surrogate products.

92
 7.3 SUGGESTIONS

As the people see surrogate advertisements, through different medias,

but they seek more innovative way of such advertisements.


The effective surrogate advertisements will create considerable change
in companys sales, so there is huge opportunity for liquor companies
to develop advertisement strategies and make more sales.


Surrogate products creating some negative impacts ethically; if
companies able to convert that negative impacts to positive, they can
take the mileage of surrogate advertisements.


Companies need to introduce various advertisement strategies
depending on different geographical areas.


Company have to give prior importance to customers preference while
doing liquor surrogate advertisements.


Companies are generally doing advertising in soda, mineral water,
music cds etc. they can go for more diversified advertisements like
sponsoring Indian Premier League etc.....

93
BIBLIOGRAPHY

94
95
BOOKS REFERRED

Philip Kotler, Kevin Lane Keller, Marketing Management, (12th

edition)

Malhotra. N.K, Marketing Research: An Applied Orientation, (4th

edition)

Advertising management concept and cases by Mahendra Mohan

Ogilvy on Advertising by David Ogilvy

WEBSITE

www.ogilvy.com

www.ogilvyindia.com

http://en.wikipedia.org/wiki

www.marketingresearch.com

www.researchandmarkets.com

96
ANNEXURES

97
(THROUGH ALCOHOL AS EXAMPLE)

NAME

QUALIFICATION

Please supply the following details about yourself:

A
g
e
:
f
e
S m m
e a a
x l l
: e e

b
)
U
r
b
Geographic Location: a
a) Rural n

1) From which media you used to watch the most in

advertisements? (Tick one)

a
)
c
P )
r T d
i e )
n b l I e
t ) e n )
v t M
m R i e o
e a s r b
d d i n i
i i o e l
a o n t e

2) Do you see any Advertisements of alcohol?

a b c d e)

98
 ) ) ) ) Dont
R N reme
R O a o mber
e c r t
g c e
u a a
l s t
a i
r o a
n l
a l
l

3) Do you know about surrogate advertisements?

a
) b
)
Y
e N
s o

4) Do you buy the surrogate products like soda; water etc. after seeing
their Ads on the media?

a
)
N b)
e Occ d)R
v asio egu
e nall c)Of larl
r y ten y

5) From the following alcoholic brands surrogate advertisement, u sees

the most? (Tick one)

d
)
b K
a ) i
) n
S g
B m
a i f
c r c) i
a n Roy s
r o al h
d f chall e
i f enge r
6) What made you to remember that product? (Tick one
only)

a b c d e
) ) ) ) )
C c v w L

99
e r o o o
l e i r g
e a c d o
b t e i
r i n
i v g
t i s
i t
e y
s

7) Do you think that advertisement of such product is required?

a
) b
)
Y
e N
s o

100
8) How will you evaluate such advertisements?
(Tick one only)

c
)
I
n
f
o
r
m
a
t
a) i
Entertaini v
ng b) Boring e

d)
Misguidin
g e) Disturbing

9) What is your opinion about such advertisement of product which

has banned in India?

a) b)
Strongly Disagre c) Neither Agree
Disagree e or disagree
e)
Strongl
d)Agree y agree

10) Do you think that the Advertisements on the media will have any
Impact on the sales of surrogate products?

c
)
U
n
d
e
c
i
d
a) Definitely b) Probably e
will not affect will not affect d
d) Probably e) Definitely
will affect will affect

11) The television ad for Bacardi creates strong misleads with respect
to surrogate advertisements in India. Do you think so?

101
 c
)
N
e
u
t
r
a) Definitely b) Probably a
will not think will not think l
d) probably e) definitely
will think will think

12) Do you recall the original product while looking at the surrogate
ads?

a
) d
)
D N
e o
f t
i
n c) a
i Oc t
t b) ca
e Most sio a
l proba na l
y bly lly l
e)
Don
t
rem
emb
er

13) Does the ad induce you to try the original product?

e
)
c) R
a S e
) o d g
b) m ) u
N Oc e O l
e cas ti f a
v ion m t r
e all e e l
r y s n y

102
14) What you feel, whether liquor advertising and its marketing when
compared to any products is ethical in India ?

c) Neither
a) Strongly b) Agree or
Disagree Disagree disagree
e)
Strongly
d) Agree agree

103